Wednesday, February 07, 2007

Quick Update

Sold Todco (THE) Feb 35 covered calls (THEBG) for 0.60. This lowers the effective cost basis of the shares to 32.14. I do plan on buying the calls back if they end up slightly in the money by expiration. Thinking about selling the Feb 45 calls on FormFactor (FORM) as well with the intention of buying them back if they aren't that deep in the money by expiration. Haven't decided yet.

*** Edit #1 ***

Sold Yahoo! (YHOO) Feb 30 covered calls (YHQBF) for 0.50. Effective cost basis now sits at 26.16. Again, I intend on buying back the calls if they're cheaply in the money.

I guess you could say that I'm getting a bit more cautious about the current state of the market. I would not be that surprised if we see a reasonable pullback in the near-term.

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